Mumbai, July 23: Shiv Sena (UBT) has accused the central government of protecting large corporate loan defaulters while taking strict measures against the poor and middle class for loan recoveries.
In its editorial in the party’s mouthpiece ‘Saamana’, Shiv Sena highlighted a written response from Union Minister of State for Finance Pankaj Chaudhary in the Lok Sabha. According to the response, public sector banks wrote off 7.75 lakh crore rupees in bad loans across 1,249 accounts from the fiscal years 2014-15 to 2025-26, each with outstanding amounts of 100 crore rupees or more. The party pointed out that despite such significant defaults, banks have only managed to recover 3.10 lakh crore rupees so far.
The government stated in Parliament that writing off loans is a standard accounting procedure and does not imply loan forgiveness. However, the editorial described this argument as shocking and hypocritical. Shiv Sena (UBT) questioned how, under the Modi government’s claims of bringing financial discipline to the banking system, large industrialists could default on such massive loans without facing recovery efforts from the government.
The editorial stated, “Taking a large loan, repaying a small portion, and not returning the rest seems to be happening with government approval.” It characterized the current period as an “Amrit Kaal” for loan defaults, where the poor struggle to repay their loans while billionaires evade repayment of thousands of crores. The party asked, if the government is complicit, who will stop those looting public funds?
Another significant issue raised in the editorial was the government’s refusal to disclose the names of large corporate loan defaulters. The government claims that under Section 45E of the Reserve Bank of India Act, loan-related information is confidential, hence these names cannot be made public.
The editorial challenged this reasoning, stating, “The names of small loan defaulters are made public, but why are the names of large industrialists hidden under the guise of confidentiality? When middle-class individuals, small business owners, and farmers make minor mistakes, their properties, vehicles, and homes are seized, yet no such action is taken against large corporate defaulters.”
The Thackeray faction raised concerns about whether large loan defaulters contribute significantly to the ruling party’s campaign funds. The party alleged that an unspoken policy of “donate to get loans forgiven” is at play.
The editorial emphasized the differential treatment between ordinary citizens and wealthy industrialists. It noted that while regular taxpayers cut back on expenses to repay small loans, affluent industrialists escape action even when they fail to repay large loans.
Uddhav Thackeray’s Shiv Sena (UBT) accused collusion between industry fraudsters and government officials, leading to losses for public sector banks. The party warned that if the government continues to shield such individuals, public funds will remain at risk.
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